2.5 Flashcards
Appreciation
Rise in price of one currency against another currency
Depreciation
A fall in the value of a currency
Barriers to entry
Obstacles that make it difficult for new firms to enter the market
Boom
High point in business cycle where GDP is growing quickly
Business cycle
Measures economic activity over time and show stages of boom,recession ,slump ,recovery
Consumer price index
A measure which shows changes in average prices over time
Deflation
A fall in the general price level
Downturn
A period in the economic cycle where GDP grows but slowly
Economic influences
Economic variables such as economic growth, inflation , interest rate, unemployment
Exchange rates
The price of one currency in terms of another
Government expenditure
Amount spent by government in provision of public services and welfare benefits
Inflation
General increase in level of prices In an economy over a period of time
Interest rate
Price of borrowing or reward on saving
Recession
GDP falls
Recovery
Period where economic growth begins to increase again after a recession
Unemployment
The % of the working population who are without a job and actively seeking work
Consumer legislation
Legislation that is to protect consumers from poor quality products and poor business practices
Consumer protection legislation
Legislation aimed at any business unfair selling practices
Employee protection legislation
Laws that a business must follow that give employees basic rights to prevent them from being exploited e.g minimum wage
Environmental protection legislation
Legislation designed to reduce the impact of businesses and protect the environment
Health and safety
Measures put in place by businesses to prevent accident or injury in the workplace
Legislation
A collective name for laws and regulations used by governments to restrict certain activities
National minimum wage
A wage rate set by government and it is illegal to pay below this
Market structure
Characteristics of market such as size of barriers to entry of market , no of competitors
